§ 2780 Nursing Corporation Disqualified Shareholder Incom

Business and Professions Code·California

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Key Takeaways

•If a shareholder in a nursing company is disqualified (like if they lose their license), the money made from their work doesn't go to them.
•The nursing company can't give any of that money to the disqualified shareholder or their shares.
•This rule makes sure disqualified people don't still profit from the company.

Example

A nurse owns part of a nursing company but gets their license taken away for breaking rules.

Even if the company still makes money from work the nurse did before losing their license, that money can't go to the nurse or their part of the company.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 2780 Nursing Corporation Disqualified Shareholder Incom

The income of a nursing corporation attributable to professional services rendered while a shareholder is a disqualified person, as defined in Section 13401 of the Corporations Code, shall not in any manner accrue to the benefit of the shareholder or their shares in the nursing corporation. (Amended by Stats. 2023, Ch. 510, Sec. 40. (SB 887) Effective January 1, 2024.)

Last verified: January 22, 2026

Key Terms

corporation disqualified person shareholder benefit nursing fine

References

Official text at leginfo.legislature.ca.gov
California Legislature. Business and Professions Code. Section 2780.

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